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The effect of a longer eligibility to a labour market programme for dismissed workers
Liste di Mobilità is an Italian programme targeted to dismissed workers. It combines a ‘passive’ and an ‘active’ component. Eligibility duration varies with the worker’s age at dismissal. Using a new panel data set, we identify the impact of extending the duration of eligibility on re-employment probabilities and wages, via Regression Discontinuity Design. We validate the design by a set of overidentiﬁcation tests. For most subgroups we ﬁnd no signiﬁcant impact, with a peculiar pattern for women entitled to monetary beneﬁts. A major negative impact emerges for workers aged 50 or more granted monetary beneﬁts, likely due to the fact that they can use the programme as a bridge to retirement.